WASHINGTON, D.C. (RFD NEWS) — U.S. dairy output strengthened early this year as herd growth and improved productivity pushed supplies higher across major producing regions.
USDA reported January milk production in the 24 major states totaled 19.1 billion pounds — up 3.4 percent from last year. Production per cow averaged 2,082 pounds, 24 pounds higher year-over-year, while cow numbers climbed to 9.15 million head, up 200,000 head from a year ago.
Farm-Level Takeaway: Expanding dairy herds continue to pressure the milk price outlook.
Tony St. James, RFD NEWS Markets Specialist
California remained the largest producer at 3.51 billion pounds, rising 4.7 percent. Wisconsin followed at 2.75 billion pounds, up 2.1 percent. Texas jumped 7.6 percent to 1.60 billion pounds, while Idaho increased 3.2 percent to 1.54 billion pounds. New York grew 3.4 percent and Michigan rose 3.6 percent. Kansas showed one of the sharpest gains — up 26 percent — while South Dakota rose nearly 11 percent as expansion continues in the Upper Plains dairy corridor.
Some regions declined. New Mexico dropped 3.8 percent, Pennsylvania fell 3.0 percent, and Washington slipped 6.1 percent, reflecting regional cost pressures and herd adjustments.
Higher output keeps milk supplies ample, reinforcing expectations for softer dairy prices even as feed costs remain favorable.
The Consumer Price Index rose 0.4 percent in August, led by higher shelter, food, and gasoline prices. Year over year, inflation is up 2.9 percent.
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